The Daily times. [volume] (Richmond, Va.) 1886-1889, 1887-01-09
The Virginia State Debt.

To the People Of Virginia:
At a meeting of Virginia Bondholders, con-
yened by the Council of Foreign BOndhOlders,
and held on Friday, the oath of September.
1885, at the CannOn-street Hotel, London,
the following resolutions were passed unani-
mOusly
THAT this meeting deplores the long contest
into which the bOndholders have been forced
for the maintenance of their rights, and, while
asserting its steadfast determination not to ac-
cept the Riddleberger settlement, which, in
view of the admitted ability of Virginia to set
tie with her creditors, and the sacrifices they
have already made on her behalf, il considers
dishonest and unjust, hereby expresses It's
willingness TO meet the State and entertain a
reasonable compromise based upon the pres
ent taxation and the available revenue, after
providing for the Constitutional appropriation
for government, schools, and other public eX-
penditure."
The State had the benefit of the whole OF the
money she originally borrowed ($34, 0OO,OU). II
laid the foundation OF her roads, railways, and
canals, and has brought millions Of dollars
into the country. Had you not constructed
these public works with the bOndhOlders'
money you would have TO be taxed now for
them.
No State which borrowed money ever en-
joyed the benefit OF it's loans more than Vir-
ginia has done. lSee Senate Document XIV.
Session, lSI-TS.l
The present unsettled condition OF the deb
is keeping capital and immigration ont of Writ
ginia, and as long as matters so continue you
will never develop the splendid resources of
the State in the way they deserve.
The revenue of Virginia is increasing. The
last assessment shows an increase Of $55,OO,-
90 i'm taxable values. Your present revenue
might be largely increased If the taxes were
more carefully collected and the present as
sessments on property equalized throughout
the State.
What might have been difficult TO do a few
years ago is easy now, and each year the bur
den will become lighter. When the debt ques-
ton is settled capital and enterprise, which
now holds alOOf, will How into the state.
The settlement offered by the bondholders
proposes that the bonds now in existence bear
Ing taX-receivable coupons should be deposited
in some trust company that new bonds should
be issued in their place, bearing no tax-receiv
able coupons, and at u low rate of interest.
When the State pays a half years interest ON
the new bonds, the taX-receivable coupons for
that half-year shall be cut off the old bonds by
the trust company, cancelled, and delivered TO
the State. Any increase on the present reve-
nue. will be appropriated by the State, and
the bondholders will not have any claim on it.
There was a cash balance last July in the
Treasury of SI37,O 100, and the average purchase
of Riddleberger 3s by the State has been at
the rate OF $6OO.OOO per annum in cash. The
State has some millions Of dollars Of assets
which would help her In arranging a settle
ment.
The bondholders are as deeply interested as
you are in maintaining the credit and prosper
ity of your State. They ask for a fair hearing
and a discussion of the question by business
men, and not by politicians, whose interest II
is 10 prevent an understanding being arrived
at and an honorable compromise made.
The best way OF bringing about this settle
ment is for taxpayers TO tender coupons in
payment OF their taxes. In view OF the con
c~iliatOry spirit and liberal offer made by the
creditors / venture respectfully 10 submit 10
yOu that IL is your moral duty, as well as your
legal right and privilege, to tender coupons for
taxes now due. JAMES l.. COOPER.
no26